When using crypto products such as wallets and exchanges, protecting the security of your assets is the No.1 priority. In “ViaWallet Security Tips”, we will share some basic crypto know-how such as common scams, how to use crypto products safely, and blockchain security mechanisms from multiple perspectives to help you fully understand asset security and adopt enhanced protection measures.

Just recently, Mark Cuban, a billionaire investor and the owner of the Dallas Mavericks, fell victim to a wallet hack. On-chain analyst WazzCrypto reported a large transfer from Cuban’s wallet, which had lain dormant for nearly 160 days, raising suspicions of a breach. The billionaire soon moved the remaining assets but still lost about $870,000 from the exploit.

Mark Cuban confirmed the crypto theft and attributed it to downloading a malicious version of MetaMask. During his use of MetaMask, the app crashed multiple times, prompting him to take action and transfer the remaining cryptos and NFTs, which prevented further losses.

In a decentralized environment, only those holding private keys have full ownership and control over cryptos, and wallets are tools that help us manage our assets. This approach protects users from potentially malicious platforms, but it also tasks them with asset security. When using a wallet, therefore, we must attend to certain details to better safeguard our assets.

Back up Private Keys and Mnemonic Phrases

Unlike centralized platforms, where passwords can be recovered via email/mobile phone/ID verification, decentralized wallets do not store private keys and mnemonic phrases on their servers. In other words, no one can access or record your “passwords”. Hence, users must back up their private keys and mnemonic phrases themselves to prevent both loss and theft.

For example, you can transcribe your private key and mnemonic phrases onto paper copies and store them in multiple safe spots that you won’t forget; or, you can also encrypt the private key and have it stored on a secure USB drive, but you will have to keep this process offline and securely manage the USB drive.

Ideally, the backup process should be kept offline; otherwise, hackers would be able to easily drain your wallet by attacking your PC or mailbox. Also, do not store your keys and mnemonics on messaging or cloud tools, as data stored there can be accessed via servers at any moment.

Access Authentic Official Websites and Apps

Incidents like what happened to Mark Cuban are not uncommon. Users frequently suffer hacks from downloading an incorrect version of a wallet. Phishing websites often show up in Google searches in the form of advertisements that rank high on the search engine. Clicking on phishing links, whether for wallet downloads or project interactions, poses a significant risk.

Wallets downloaded from phishing links can steal your assets through the private key you imported, while fake project websites can acquire transfer authorizations during your interactions, allowing them to drain your wallet through smart contracts.

This is why we always have to check a website’s URL before clicking on it, and preferably, verify the official website of the project and wallet on platforms like Twitter or Telegram to avoid unnecessary asset losses. Additionally, do not click on links from unknown emails, as they may compromise the information on your computer.

Enhance Security Awareness

While using a wallet, users can enhance their security awareness by recognizing common scams and authorization risks. ViaWallet, for example, offers multiple security features, including phishing address risk marking, high-risk address identification, and contract authorization detection & cancellation.

Furthermore, you can find regular updates about security know-how in ViaWallet Blog to stay informed and adopt more effective protection measures, minimizing the risk of asset loss.

In a nutshell, when using DApps like a decentralized wallet, always keep these principles in mind: 1) never share your private key with anyone, and do not enter your private key in any insecure environment; 2) stay cautious about authorizing large transfers. Remember, protecting private keys and limiting authorizations are the best ways to secure your assets in a decentralized environment.

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